Russia has stated that gas prices in Europe could rise to $2,500 per thousand cubic meters

Gas prices in Europe could rise to $2,500 per thousand cubic meters if this coming winter is cold. This forecast was made by Gazprom CEO Alexey Miller. However, this is his personal assessment, not a confirmed scenario or forecast by independent analysts.

According to Alexey Miller, European gas prices already exceeded $1,200 per thousand cubic meters in October. He claims that Western experts had expected such levels only during the peak fall-winter consumption period.

As an argument in favor of his forecast, the head of Gazprom cited the fill levels of German gas storage facilities. According to his data, the storage facilities in Germany—Europe’s largest gas consumer—are 61.6% full.

Miller attributed this figure to the slow pace of gas injection and suggested that during a cold winter, the price of gas could reach $2,500 per thousand cubic meters at certain times.

At the same time, the data cited by Miller pertains specifically to Germany, not the entire European Union.

According to a Reuters report from October 29, European gas storage facilities were generally about 75% full, while in Germany, the storage level stood at 61.7%.

The German Ministry of Economy and Energy rejected accusations that the country had not replenished its reserves sufficiently. The ministry stated that gas supplies remain secure thanks to liquefied natural gas, pipeline imports, and the integrated gas network.

The price increase comes amid disruptions in liquefied natural gas supplies from the Middle East.

On October 28, the benchmark gas price at the Dutch TTF hub briefly reached 100 euros per megawatt-hour. This is the highest level since December 2022.

According to Reuters, the market is under pressure from shipping issues and uncertainty regarding future supplies ahead of the heating season.

The forecast of $2,500 per thousand cubic meters is Alexey Miller’s own estimate, assuming a cold winter. It should not be considered a confirmed scenario or a consensus among independent analysts.

The Gazprom CEO’s statement came amid a real increase in exchange prices for gas in Europe. However, this does not mean that the market will necessarily reach the level he mentioned during the heating season.

This is reported by Russian companies and Reuters.

Earlier, the price of European natural gas exceeded €100 per megawatt-hour for the first time since 2022. 

The trading company Trafigura has signed a new five-year agreement to supply natural gas to the German state-owned importer Securing Energy for Europe (SEFE).